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- **Strategic Pivot Completed**: OxyChem sale accelerates debt reduction to below $15 billion, freeing capital for oil and gas growth.
- **Permian Dominance**: Record 800,000 BOE/day Permian production, 2.5 billion BOE resource expansion, and 16% lower capital intensity since 2022.
- **CO2 EOR Breakthrough**: 2 billion BOE resource with 45%–100% production uplift, positioning as a low-decline, high-return asset class.
- **2026 Growth Plan**: $400 million allocated to unconventional Permian, targeting 2% production growth; $250 million to Gulf of Mexico and Oman waterfloods.
- **Financial Resilience**: $1.5 billion Q3 free cash flow, $3.6 billion debt repayment year-to-date, and $6.3–$6.7 billion 2026 capital budget with flexibility to adjust activity.

**【CEO Summary Section】**
- Announced the sale of OxyChem, a strategic pivot to focus on high-quality oil and gas assets, with proceeds to reduce debt to below $15 billion.
- Highlighted a 30-year development runway with a portfolio shift to 83% domestic production, emphasizing Permian unconventional and CO2 EOR projects.
- Q3 2025 results: $3.2 billion operating cash flow, $1.5 billion free cash flow, and 1.47 million BOE/day production (Permian: 800,000 BOE/day, record high).
- Cost efficiency: 16% lower capital intensity since 2022, $2 billion annualized cost savings in U.S. onshore operations.

**【CFO Financial Commentary】**
- Generated $0.65 EPS, $1.5 billion free cash flow (before working capital), and repaid $3.6 billion debt year-to-date.
- Q3 2025 guidance updates: Oil and Gas segment production raised to 1.46 million BOE/day (midpoint), Midstream and Marketing pretax income up $400 million vs. original guidance.
- 2026 capital allocation: $6.3–$6.7 billion, with $400 million reallocated to short-cycle Permian projects, $250 million to Gulf of Mexico and Oman waterfloods.
- Debt reduction plan: Use $6.5 billion of $8 billion OxyChem proceeds to repay debt, targeting $15 billion principal by end-2026.

**【Q&A Key Highlights】**
- **Permian Resource Expansion**: Added 2.5 billion BOE through secondary bench development, with 16% lower capital intensity and 22% 6-month oil production improvement vs. 2023.
- **CO2 EOR Potential**: 2 billion BOE resource opportunity with 45%–100% production uplift; 3 commercial projects and 30 development-ready projects identified.
- **2026 Capital Flexibility**: $400 million allocated to unconventional Permian, with ability to adjust activity based on oil prices ($55–$60 WTI plan).
- **Gulf of Mexico Waterfloods**: 150 million BOE recovery potential, reducing decline rates from 20% to 7% by 2035.
- **Share Buybacks**: Post-OxyChem, focus on debt reduction first, then opportunistic share repurchases with cash balance maintained at $3–$4 billion.


Occidental Petroleum Corporation (OXY) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

OXY

OXY fundamentals

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